CC alert...

[fkj2]

Sorry if this is a repeat but it was news to me. The CC companies and various stores are charging inactivity fees. Found this from MSN so I"m including it if anyone would like to peruse it.

http://moneycentral.msn.com/content/Banking/creditcardsmarts/P98888.asp

 

[DebbieB]

Yikes! I have alot of cards I took to get special offers and haven't used them in ages.

 

[georgina]

Is that a really old article? The related articles on the side are from 2004. It mentions shrinking grace periods, and I think the new CC law specifies a minimum grace period. I have never been charged an inactivity fee, even though I have had cards I rarely used. (Some of them have been closed by the bank or by me recently though.)

 

[fkj2]

Is that a really old article? The related articles on the side are from 2004. It mentions shrinking grace periods, and I think the new CC law specifies a minimum grace period. I have never been charged an inactivity fee, even though I have had cards I rarely used. (Some of them have been closed by the bank or by me recently though.)

I don't know how old the article is but I heard one of the commentators on a morning show discussing inactivity fees for the first time. I knew gift cards lost value, but this is the first I'd heard of this. USAToday posted this in August:

In June, Fifth Third Bank began charging a $19 fee if credit card borrowers have no account activity in 12 months. Discover now levies a 2% fee on purchases made outside the U.S., and Chase has introduced a $30 annual fee on its popular Freedom credit card for certain cardholders.

http://www.usatoday.com/money/perfi/credit/2009-08-05-credit-cards-new-fees_N.htm

The commentary this morning mentioned this happening particularly with store cards, in contrast to bank cards. All I know for sure is I'll be checking my issued cards because I don't have extra $$ for inactivity fees.

 

[mb168]

How about an article from Oct 29, 2009 on USAToday.com

 

[Chicago526]

I've heard of these in the news the past few weeks. Can't say I'm surprised, they are now turning to the few customers they have left that they weren't previously making a profit on in order to turn a buck. That's their right of course, but they shouldn't be surprised when most of those people just close the accounts. Anyone with a zero balance can afford to tell them where they can stick their cards.

Every time I get a notice in the mail over a change in terms, I'm opting out and closing them all down. By the time I'm done, the only card I have left is the one I use to earn frequent flyer miles.

 

[fkj2]

Poor CC companies. They've had ample time to raise interest rates before the restrictions take effect--and have.

IF you pay no more than 20%, your initial purchase, according to the rule of 72, will double in about 3 1/2 years. At 30%, the initial cost doubles in 2.4 years.

Banks are paying passbook savers less than 1% in interest, generally speaking, and the cc companies can't struggle by with rates between 20-30%?